wahm articles

How Small Business Grants Can Help a New Entrepreneur

Small business grants can provide essential start-up or
running capital to a new entrepreneur. However, the benefits of a
business grant do not stop there. Business grants can assist new
entrepreneurs to expand their business plans or may even attract new
clients or customers merely because of its receipt.

Provides Capital

At their most basic, small business grants provide new business
owners with essential capital to begin a business. Because a grant does
not need to be repaid, small business grants come with no debt, making
them even more desirable. This capital can be used to start a new
business, or expand a business to include new products or services.
While application of a grant requires a statement of what the grant will
be used for, there is often no requirement that the funds actually will
be used in that manner.

Provides Access to Lenders

Often, those businesses that receive a small business grant will have
their information provided to local lenders. Additionally, because the
company has previously been approved by a government, group or another
organization offering the grant, these lenders may offer funds at lower
interest rates. Sometimes, even if a company was not awarded a grant,
lenders will offer loans at lower rates than a company would receive if
the loan was solicited by the company.

Provides Access to Consultants

Grants sometimes become attached with requirements to permit
consultant involvement in the business. These consultants will keep an
eye on the business to make sure that it is using the funds properly or
according to the guidelines set in the application. However, these
consultants will also offer advice to the business on how to expand,
make services or operations more efficient or how to attract more
customers. As these consultants will come at no cost to the business,
receiving their advice is invaluable.

Provides a Marketing or Public Relations Tool

Advertising that a company has been awarded a grant can be extremely
attractive to the public and can be a great marketing and public
relations tool. Customers and other companies hearing that your company
has been awarded the grant, particularly when it comes from the
government, will consider your company to be stable and likely to
succeed. If a grant-issuing authority has found your company worthwhile
to invest in, that means that you are on the right track with your
business. Announcing or otherwise making it known that you have been
awarded a small business grant can attract new customers, funding and
provide greater standing in the community.

Provides Access to Other Grants

Recipients of a small business grant are not prohibited from applying
or receiving subsequent or simultaneous grants. Oftentimes, passing the
grant reviewing process for one grant can make your company more likely
to pass the review for another grant. Therefore, it is possible that
you might find yourself the recipient of more than one grant in the same
or subsequent years.

Provides Access to Leadership Positions

Being awarded a grant shows that you are a serious business owner and
that your business is anticipated to succeed. As other grant awarding
groups and business organizations become aware of your receipt of the
award, they may invite you to join their groups or even serve on their
boards. Being awarded a grant can instantaneously make you one of the
community leaders of business knowledge.